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tv   Fast Money Halftime Report  CNBC  July 30, 2014 12:00pm-1:01pm EDT

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ahead of the print. whole foods, by the way, reports after the bell. up about 2.6% and tesla, later in the week, at 227 dollars, 62 cents. twitter a big mind share stock. another one for later in the week, guys. >> green stocks. there you go. >> with all that, dow down almost 90 points. the judge takes over from here with "the half." >> carl, thanks. "halftime report," meet today's players. pete and jon najarian, founders of options steve weiss, managing partner of short hills capital. john terranova, and the stock a standout. you may remember, got into a heated conversation about that company yesterday, and whether it can ever really compete with facebook. >> twitter, you know, i think we have to kind of give them the benefit of the doubt. >> i keep coming back to, who has the faster growth, and who has the cheaper valuation? and that's actually facebook.
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>> as long as that's the framing, twitter definitely going to look like the lesser stock. >> investing base and the future, not the past. twitter is the winner. it pook facebook five quarter, five, as a public company before they clicked with wall street and figured how to play the game correctly. twit sir a place to go for interests and make relationships and friendships with perfect stranger. facebook is a place basically you learn how to hate the people that you know already in real life. >> all right. that was the conversation yesterday. what you saw in that clip, of course, back with us today. zach, good to talk with you. >> thanks for having me. >> now what? you heard enough? are you convinced? >> look, you can't poo-poo yesterday's results. they were terrific. stocks responding accordingly. no, i'm not convinced. look, monthly active users, long as that's the stat people use to judge twitter, very clear this is not a company that's going to get to a billion users in the way facebook has, and so if
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that's what we're looking for, i think it's hard to expect that. >> anthony noda and costolo want to be in front of every human being on planet. they said that yesterday. >> they said don't count active users also count users who don't l log's in. legitimate, but that's a media company, not a tech company. >> doc, time to show twitter shlove? a lot of haters coming into the quarter. where are they now? >> i don't know. i will tell you, judge, when the stock was pounded by insiders, when that lockup came, and the stock cratered all the way down to, what? $28, $29 a share, few of us wanted to buy it there. i only bought it because i doubled down down there. i'm not saying i was smart. a lot of folks gave me crap about buying a stock and doubling down on it. fortunately, the stock did come back. up here, judge i don't have a lot of reasons to want to jump
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in here. facebook has 2.2 billion shares. okay? they made 42 cents a share. call it $925 million. that's a heck of a lot more money than twitter made. i can't put these two on the same playing field, really. i know they're both social media, but they are not the same. ko kudos for josh saying time to get in yesterday and so forth -- >> saying, if not that, give them time. >> but, come on, when you're basically -- if you don't take all of those charges and everything out, judge, they lost money here again. that is not a company that justifies this kind of multiple, i don't think. >> what else do you want to see? >> first of all, i disagree with doc. it was smart to buy the stock down there. so many panicked, sold it, a new trade. kudos on that. look, i think it's still very overvalued, but the only thing that matters in wall street, how do you relative to expectations. some companies get it right.
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>> not how you do relative to facebook. you're saying. >> exactly. >> relative to the expectations? >> exactly. >> the expectations can, i don't know. low. >> very low, and as many people shorted i think, as long in terms of setup trade, bud itt i important to show better metrics to show the growth. i don't think it's a facebook or will have enough mindshare facebook does. it's going to be ultimate the ad revenues. not number of users. the ad revenue and they're not making money. momentum until next quarter and then another question what's going to happen? probably do okay, but i'm not a buyer. >> we wanted josh brown to call in today. josh is on the phone. you were clearly the biggest bull on twitter yesterday. you take a victory lap, whatever you want. what do you think now that they delivered and you said to give them a chance? >> i don't want to take a victory lap. i want to reframe a ridiculous notion it's facebook versus
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twitter. it's not. the advertising that facebook is pursuing is enormous. every branded advertisement you see on the outfield wall of yankee stadium a billboard on the highway, on television. that's a great opportunity. and the point is, it's big enough for both facebook and twitter and a lot of other companies besides. the more important thing to keep in mind is that twitter is not just a technology company. it is also a media company. it is to show itself in addition to being a way to talk about the show. it is a sporting event venue just as much as it is is a technical way to deliver people talking about the sport. so when we say, well, they don't have the that many monthly active users, i got news for you. it doesn't matter. they have the right monthly active users. they have the people that are influencing the culture that are influencing the world. there is politicians, actor, actresses, sports figures and people are tuning in. whether they're actively tweeting back is not quite the
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point. i think when you look at the opportunity that twit hear in front of it, the wrong thing to do is constantly compare to facebook. people are using both services, in very different ways. that's okay. >> sounds like -- >> enough business for everyone. >> pete, sounds like a fair point? >> right. >> is josh on to manait? >> these are different companies. aren't exact lly the same. >> people come on the show, you must own one or the other. >> i've never believed in that. like owning one different carrier other another. i think they both can survive. facebook is a different group. josh put it out there. after the quarter's release, one concern, great numbers as far as growth. absolutely. added 16 million. best quarter they've had in five quarters of reporting. >> it's triple digits! stephen weiss saying they don't make money. they're going to do a billion 3 in revenue. in public six months. give it time! >> josh, hold on a second. >> josh -- they did 300, just
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over 300 million in revenue this quarter. and you're projecting out there, 1.3. great. >> for the year. >> that's pie in the skies, my friend. that's not fact. facebook is fact. that's 3.whatever billion in revenue, these are not the same. you can't put one against the other. i agree with that. >> and facebook, how much revenue on an annual basis i know the answer. give me what you think is the answers. how much revenue was facebook actually doing in fact in may of 2012 when it came public? what do you think the annual revenue number was? >> josh, i don't look back. >> same at twitter. >> i look where it is now. >> josh, let me jump in. first i didn't say they're not making any money. i said making little money right now. >> that was a direct quote. >> okay. >> i'm the one that said they're not making any money. >> that's a relative term. made 15 million bucks. revenue, great they're growing. ultimately you don't spend revenues. for me they can make more money and will grow.
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listen carefully and took the time instead of making so many friends on twitter, by the way, you must really love craigslist, you'll understand what i was saying the valuation is very high. there's still momentum in the stock but it's not something i played, because the risk/reward to me is untenable. >> fine nap has nothing to do -- >> i'm not saying that everyone should own one of the most expensive stocks that trades on the market right now. >> i didn't say you said that. >> that's another discussion. the discussion is what is the opportunity for investors who be willing to bet that twitter's revenue can grow and twitter's user base can grow? and i think -- and i think you guys by the way have a good point. there's no possible way twitter catches facebook and has a billion -- i don't think that that's what you should want as the bull case leer. the bull case here is their importance to overall advertising markets it grows in and of itself regardless of how
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many users they have today, tomorrow, the next day. you have to be a long-term bull if you're in the stock and can't bet it will happen in one quarter. >> zach -- >> josh is completely correct. the whole conversation captures the ridiculous pickment of companies forced to go public earlier than they should have for early investors to cash out and now forced to apartme ed to every three moss. they have an amazing product. penetrated at least american cull her and quickly several other countries as well, and should be focused on improving that over a time frame of maybe two, three, four years and instead we have to -- they have to show in a growth in three moss. macro question here about, like, why is this company even public in the first place? >> right. zach, leave it there. thanks for coming back. josh brown, thanks for calling in i. love you guys. good-bye. you may have noticed we're near the lows of the day on the
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dow. erased all july gains turning negative for the month. i don't know what you think. the gdp obviously was a better print than expected. maybe people are thinking that the fed's going to hike rates faster than that he had like. why the market is selling off? theories, joe? >> i think 100%. the macro condition of the market is what's most concerning about today. twit sir a great conversation to have but a trader conversation in terms of asset allocation. ask yourself this afternoon, does janet yellen recognize in terms of the acceleration of growth that the economy might be a little bit ahead of itself? the two-year, the yield for the two-year is clearly telling the federal reserve they're behind the curve. >> well, you'll hear from them later today. in fact, after the break, you're going to hear more on this conversation. coming up, is the economy signaling that rates could, in fact, rise sooner than expected? we're going to find out thousand play it from ubs's paul richards, and a boom and bust story, one of the worst the bust
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and boom crash. are things feeling too familiar this time around? much more "half time" is up next. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.
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welcome back. we are off the lows of the day. there are the laggards for the dow jones industrial. pfizer, merck and coca-cola. the u.s. economy rebounding with second quarter gdp beating street estimates by a full percent. stocks down, however. joining us with their takes, cnbc paul liesman. and steve weiss. what are you thinking? thinking a faster fed? >> some kind of reaction. revisions of the most recent quarters revised up, and by the way, we're getting a lot closer to explaining the high levels of job growth that we've had, because the gdp numbers are looking more like it. still people looking incredulously at the minus 2.1% in the first quarter, fwhaut will be revised, too, scott. a bunch of bounceback. the debate, whether or not we're accelerating to a new and higher
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level. for me, it's early days to call that, but the fed has to think about it and has to be risk that the fed is considering it. >> paul richards, how should we think about this gdp and what it means more rates? >> steve summarized well. it's premature for the market to react. i don't think it will change what the fed chairman says this afternoon and the bigger convenient for the week remains 8:30 on friday with pay roll. a bug number friday, say 300, a different event. to what steve was saying it playing into explaining what the employment numbers are as we see gdp, but i'm also concerned we see a weak print on friday, say 195. that would rattle the market. so i think friday's bigger. >> steve, you don't often get a gdp report and certainly one of this magnitude on the day that the fed is going to give a statement. right? doesn't happen that's often. i wonder if now they're getting to digest the gdp number that you're going to get a discenter or tdiscenter
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-- descenter or two? >> if you read what fisher -- >> fisher was always saying -- >> finds himself increasingly at odds with colleagues. that language ahead of time would be normal to come before a descent. perhaps charles plauzer. the question, what precise l lir-olir precise lir they descenting on. the question on the table two questions. one, when do they begin? and the slope of the increases? whether or not you think they move faster than otherwise. >> joe, the risk, the statement is more hawkish than dovish, certainly at this point, after today? >> clearly. and if i could, i want to get paul's take on this. paul you have the value of the u.s. dollar. jon, you bot eup. the value of the u.s. dollar now at a one-year high. are you growing concerned about that move? >> i actually think that the dollar getting overvalued here. when euro is 139.50 i was calling for it to come up because i followed drawingy.
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n draghi. the same calling for 145 are calling 124 now. i think the dollar's had a nice rally but it's contingent on the ten year to say 260, 265. that's payroll dependent. technically i would sell. in danger of selling off on endangered led eed levels. >> try thissous. closer to 275, the geopolitical risks and see a nice bounceback from the first quarter and seeing inventory numbers, very strong, which to me are leading indicator of, for the strengthening economy, consumer confidence? >> a quick crack at that. that there were big negatives of inventory first quarter. balance it whip the second. inventories don't look ridiculously out of line. a measure of confidence people are bringing it to the shelves and able to sell it.
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i'm not too concerned with inventory numbers but third quarter could be a half to a quarter less than otherwise thought by the street. >> a wild card now, paul? isn't it? what actually happens now in this current quarter? in its young moments? >> big time. makes q 3 a big time for markets. i think janet yellen continues the trend. we're going to get tapering done first. get it done by october. to the point that q3 data, employment gdp, every piece of economic data will be closely followed and we'll know whether they're move in march or july-august next year. we need to be patient here. >> try something out. one of the things nice about this number today and prior revisions is the way it confirms some of the things we're seeing in top lying growth. to the debate as to whether or not this market is flying on the hot air of fed stimulus, it seems like these numbers today suggest there's a little bit more something substantial
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underneath the current earnings and revenue numbers that are out there? >> i don't disagree, steve. it kwernl confirms to the arguh santelli. >> i don't know what you're talking about. keep going. >> at least i call it an argument. >> yeah. >> look, my point is that the u.s., they moved first. they moved very well in my opinion. and now we're seeing the ecb catching up, the boj and others catching up. i think what we're seeing is five years of hard work finally playing out. it's more than just headwinds here. this is genuine growth. plus we're seeing an element of fink's discipline coming into the u.s., which i like. still, there's more work to be done and i think patience is just so key here, steve. i like where it's all going. that's one thing i would say. >> paul good to see you again. talk to you soon. steve, to you as well. the president is making remarks today in kansas city. our john harwood, in fact, has the highlights there from washington, d.c. and, john, he's no doubt feeling good about that gdp number? >> reporter: for sure, scott. one of the things presidents do
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when they get a good piece of news, flog it out on the road. in kansas city before a crowd just a few moments ago, the president noted that the policies that he implemented amp taking office in 2009 are beginning to show some results. >> hello, kansas city! this morning we found out that in the second quarter of this year our economy grew at a strong pace, and businesses are investing. workers are building new homes. consumers are spending. >> reporter: the president discussed with steve liesman last week, he's got a lot more that he wants the congress to do, hasn't been able to get done. so mixing the celebratory aspects of his remarks, a push for more action and where he can't get action from congress he's shown he's going to try to take some executive actions, guys. >> john harwood, the latest on the president's remarks today live in kansas city. from a stock trading or investing standpoint, doc, pete,
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how do you navigate now knowing that a fed statement is coming? knowing that the risk is certainly going to be to the hawkish side? given where we are in the economy now. what's your best bet? >> i feel better about it right now, judge, with the market making that move to the down side of 90 points than i felt this morning when it was up 70 before that statement. so as far as that goes, i feel better about the chances the market has to do better after this statement than with the market to the upside and everything -- >> i wonder if -- if people had been speculating and looking for an excuse for this long-awaited correction to finally rear its ugly ned some way, shape or form, whether this would be a tipping point -- this afternoon. >> i asked paul about -- then i know you'll have thoughts on this. i asked paul about the dollar for a reason. because you have to think multi-nationals here. so if this is a point where the dollar is as paul just said, overvalued, well, okay. let's take a look at a caterpillar, pulling back.
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a good opportunity if you tell me the dollar is going down. i think that's important. dollars down. i got to look at the commodity name, the material name, the multi-national names because they're pulling back. that's an opportunity thenkts and those are exactly the opportunities i think exist every time we see these types of sell-offs. what's getting oversold and overreaction to what we're seeing as far as news in front of us, scott? we see it almost every time. whether the rail, suddenly there where they were. airlines, then right back where they are. material names specifically. i think those anytime we see any of those sell-offs that's opportunity and some of the spots that actually are very bright today as well. >> transports worse four-day drop in six months. getting a little reprieve today. bertha coombs, right? >> yeah. showing relative strength on a day the market is seesawing and flat. rebounding from that decline, worst since march. the dow transport index up 0 .4
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percent about near the highs of the day. leading higher, ch robertson world wye, bank of america, merrill lynch, neutral from undertomorrow based on net revenue margins and raised its price target to $68 from $52 a share. see the stock up there better than 3%. also higher today there, united, continental, fedex and kirby as well. scott? >> bertha, thanks. coming up, his company skyrocketed like no ipo ever before on the nasdaq, and then quite a spectacular fall from grace. the ceo of the joins ow special series, nasdaq 2.0, party like it's 1999, and the najarian brothers gearing up for a food fight. it's yum versus chipotle. pete versus jon. bring your bibs. we'll be right back.
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welcome back. it's a brother versus brother food fight. chipotle on a monster run up 15% in the past month. on the flip side, there's yum brands, down 10% in july alone. so which is the better buy now? let's debate it and remember, logon to to decide the winner in realtime. pete is the bull on chipotle. jon the bull or yum brands. buck 30 on the clock. pete, up first. don't talk with food in your mouth. >> do my best. talking chipotle look at q2 earnings. spectacular. beat by 42 cents. came in at 350. revenue, surpassed a billion in revenue. monster beat as well. look at sales up 17%.
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everything seems to be working for this casual diner, and they have pricing power. this is a company that's able to actually raise the prices, people don't get mad. they don't stop going. traffic remains the same. as a matter of fact, in anything else, the traffic goes up and they're expanding, doing it at a right pace adding 40-some odd stores in the next quarter. about 180 stores for the year. a company doing everything right at the right time. >> china's making a comeback, pete. what you've got to watch here is that these guys, right now, that we're talking about, same-store sales up 15%. in china. >> they get 50% of revenue from china. >> they sell a heck of a lot of this. i think they're going to be selling an awful lot more margins are 18% now. that's back to 2012 levels, pete, and you're going to be seeing operating profit 40% overall i think q2 earnings will be through the roof, and continuing to grow. >> pete, he's gaining on you. >> he may be gaining on me, excuse me while i take another
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bite of this chip. i'm concerned whmp i see something else, china is sitting there somewhere spinning around. it's still spinning with the food in china. because of that i think it's going to hurt sales, going to be another quarter or two again for them and meanwhile, chipotle continues to grow. >> earnings up 30%, judge, over the last quarter. i think these guys continue to grow. china, want to be long china. >> i can't believe we basically have a tie. what about on the desk? >> break the tie. >> let's go domestic and talk about the performance. remember, i debated mike murphy on this one. it was the bear, and completely wrong. the stock since earnings for cmg have not pulled back. trading 678. domestically, yum, take numbers from pizza hut and taco bell? why? cmg is taking the market share. look towards the future, growth expectations are there. yum, too many power.
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>> and a brand, you really have to be analyzing what about taco bell and because of that, they've got to keep their prices competitive. >> and opposed to casual fast, which we're talking about chipotle, all el pollo loco. raising prices that doesn't stop people from coming. >> see the winner on the screen as the conversation continues.
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chipotle. >> i know my food. >> cmg, 52-46. coming up, is whole foods due for a bounce? the second worst s&p performer so far this year. mike murphy owns it. will he make a move before earnings, and should you. and, one of the most remarkable stories. the former ceo will be here live to talk about the stock's initial rise. we're going to remind you how big that rise was. this is an eye-opener for sure and, of course, the incredible fall. part of our special nasdaq 2.0 series. much more ahead on the "half." y. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members
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its crash. delisted three years after going public. good to talk to you. >> good to be back. >> looking back. november '98, public. biggest one-day pop. some 600%. bankrupt i guess a year or so later. what do you remember about the day that your company went public, the day you saw that stock surge 600%? >> i was, it was surreal. we'd started our company back when nobody really understood what the internet was and took us four years to build up the traction and become one of the best in the world. going public was a foreign concept. ke didn't know what it really meant, but when we went public and saw our stock shoot up 1,000% that day, completely surreal. we were broadcast all over the news worldwide, hearing from people we hadn't heard from in years and somewhat of a
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sensati sensation. i down believe it happened. >> equally surreal to see the company go bust not that long later and certainly much sooner than you or anybody epps expected? >> yeah we saw our stock decline over the next two years. the company around seven years. i can say when the internet bubble burst and everyone was wipe the out, we went with it, and it was a shock. people were thinking you know, well, the internet was a fad, wasn't meant to be. we all knew was a silly phenomenon. i was sitting there in shock, thinking the internet feels it isn't a fad and so much bigger and took another four years before google and facebook brought it back, if you will. >> what do you think as you look at the nasdaq now, technology in general, some of the comparisons that are being made between now and then? are there similarities? >> really, only skin deep. fundamentally, we've gone from a point where there were 200 million users back when we went
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public to a point of 2 billion people using internet through their cell phones, for instance. everyone buying stocks are actually much more familiar with the internet services they're using. that's already a good thing and all the companies going public are going public much later on billions of dollars in revenue. long as you're generating revenues you're a real business. some of the multiples and valuations, a little frothy based on profits? yeah. in some cases, yes, but not at all the same thing as back in the late '90s. >> i hear some sap the may have been facebook before facebook. and i'm curious as sort of you look where that company is today. and what mark zuckerberg has built. what goes through your mind? >> well, i've congratulated him every single time i've been invited on any segment and poefrt ared on his own facebook wall a congratulations but also put up warning when you go public you're going through a, an irreversible process, which
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is everyone judges you on a quarterly base and it becomes harder to make long-term bets and big, bold moves. however, he has done them. with the acquisition of oculus, of what'sup, proven he's not focused on the short term but the long term and how do i feel tab? he's completely validated what we were trying to do in the late '90s, prove the big evolution with the internet you can live online, have a social network nap was person to person interaction. we made a dent, but they really busted through and changed it for everybody. >> looking at an excerpt from your book in 2001 in which you say, after the i never wanted to be in another position where i build an asset only to have it taken away. i want to be the asset. expand on that and what you're doing today. >> well, simply put again. going public means everyone sud lay ownership in an idea you have, and when the markets get
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tough, people have short-term views and start to put pressure on you. every ceo of a public company experienced that as well as the president. you know, it's hard for you to make good long-term decisions. now, since then, i took a good ten years to sort of step away and look at the big picture of the internet and see the revolution that's occurred and see the new trends and decided to come back at this, once enough time it gone by and i had learned fluff, a eed enough. the big transform asiation i've seen, capital, projects that have money and need money and the interesting way it disintermediates some of the leg serious institutions like banks and government. i've personally become a backer of companies like lending club and angel list, second market and slated, slated obviously co-founded. we believe, for instance, that how money flows from people that have money into films is a, an
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age-old highly fragmented completely opaque, inefficient medium and slated is here to re-invent that, much the same way all of the companies had huge success moving money around, wee doing the same with slated. >> i'll take the liberty of calling you an elder statesman of the dot com universe. >> sad but true. >> in that mode -- tell me what you think about twitter? at the top of our program today, we were coming off a debate as to where this company goes from here. is it time to show twitter some love? is it even relevant to discuss twitter in the same breath as facebook, for example? >> look, i mean, you guys are the experts on speculating for short term and medium term. i'm unable to do that. i really look at things through a five to ten-year lens. when i'm asked to comment on stocks and the ipos, you know, when facebook's ipo went poorly i said, look, ignore the short term. the long term views are very
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good. >> you spoke eloquently about facebook, for take the stock equation out of it, is twittery company th a company you're excited about? >> look, companies are about the teams. if i just look at what twitter is today, it's a one-trick pony. we can see a lot of their metrics are declining despite having had a recent good quarter. as long agency you have a smart team and they think about acquisitions or growing completely new organic tools, they need to diversify. the one suggestion i make for dick costolo diversify. find new great assets you can marry to what you have so two, three, four, five years from now it's no longer about 140 character breaking news. we've seen what happened to cnn over the last decade. being in the short-term breaking news business, whether from celebrities or politicians, it's not a great long-term prospect bp you've got to find other ways to monetize. >> appreciate the conversation very much. hope to talk to you again soon.
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>> my pleasure, thank you. guys, many you watched this rise and fall. >> i priced basically -- priced allocated every internet deal that lehman did during that boom, and when the came, ivillage and all the other, you said how do we get those? it drove customer business. at that point in time a new phenomenon. uneducated buyer, separate liars from buyers. who knew what they wanted? and who just wanted to get the pop? s 10, 20, 50, 100% pop? now it's different. people have that lesson in a rearview mirror and are more cautious going in. >> the fact people can look into the companies and understand them better. people had no understanding. buying because it was an ipo figuring it would go higher. people can look into company, see the fundamental story. if they're willing to say i'll take the risk, it's a completely different vision than people had back in 1999, 2000. >> one area that's similar now to back then is in the ipo activity we've seen in some cases.
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doc? >> yeah, well, stephane, for instance, talking about twitter being a one-trick pony. we've looked at things we thought twit shoer have bought but didn't. like instagram, for instance. well, zuckerberg has been making those moves. what the globe did, they went and scattered all over the place, unfortunately for them. into voice-over ircht net, into games. not a solid direction they were going. not saying twitter needs to go out and willy-nilly buy things, scott, were ut if they are just twitter if that's all they are, i don't think they'll be here in this present form in three years. >> well, twit sir a big winner clearly on this day. looking at the market as well throughout the program. you do have the s&p and the dow in negative territory. watching bonds as well. it the reaction in interest rates on the back of that much better than expected gdp report, ten-year yield rising sharply ahead of the fed this afternoon. jackie deangelis has the latest at the nymex. >> good morning, scott.
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exactly right. the rates definitely are rising. yields on the ten-year note above 2.5%. part of it, the gdp report in advance of the fed. scott nations get your take on this. is this signalling a longer term move on rates? >> well, it certainly looks like it is, but good gdp news, bad news for stocks and bonds. we see ten-year futures up 3/4 of a full point. est tring thing about the ten-year yield, wouns convincingly off 245, headed towards 2.80. bond bears whip sawed. tried to catch every sell-off and it hasn't worked the last several years can. >> waging the yield when we hear the fed statement come out this afternoon. meantime, for more on futures check out our website, we've posted our interview yesterday with ron paul. lots of good stuff in there. scott, back to you. >> i'm sure there is, jackie. coming up, our call of the day on a popular retail name has
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investors looking for a way out. should you? then airline news flying under the radar this morning. we're hitting traders with the updates you might have missed. that's next on "halftime report."
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welcome back. back to today's market with three things our traders are watching that night not be on your radar. doc what are you watching? >> judge, watching electricity. because prices hit a new record, judge. prices of electricity. one of reasons other than low interest rates i think utilities stocks should be on your radar. >> i'm watching airlines. american flying under radar and come down quite a bit while delta and united air have gone up. it sold off on latin-american news. cutting routes. i would buy this one here. >> pete? >> look at the casinos. over the last week or two, look at the way wynn is performing, mgm, em pell, lagging all year. still lagging. look at numberance some of macao numbers, look at the wynn report. the names, even today in
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negative tip wins in the positive. coming up, could it be the most painologic ologicaful lossy of poke jer worst trade. you won't believe it. and after a down grade, revealing it. it is our "call of the day" and it is right after this break. my motheit's delicious. toffee in the world. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. we created legalzoom to help people start their business and launch their dreams. go to today and make your business dream a reality. at we put the law on your side.
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who wants to touch this one this we talked about it so many times on this show. joey? >> he's called the top virtually for the year on this one. would you get back in? iismgts i would get back in, but it's got to be the mid 70ss. the street anticipated a very high capture rate on market share from coach. 80%, the 0%. that's what they did. they had growth rates of 40% to 45%. the street now acknowledging the capture rate will shrink. the growth is going to slow to 10% to 15%, so there could be further down side. i'm not going to aggressively get in here and say go buy it at 82. i think it needs to cheapen a bit more. >> it seemser early to say, hey, this is done however, it isn't cheap. it's been driven by momentum.
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>> do you feel like there's been an overall sentiment shift? >> it feels like it. it absolutely does. that's why the momentum has turned. just couldn't get through the par level. >> well, we have some importance earnings on tap for tonight. let's check in with bertha coombs for everything you need to know ahead of the close. >> we've got lots of consumer-related earnings. let's start with yelp. investors are focusing on the ability to serve as a advertising platform and improve its mobile traffic. the street is looks for a loss of three cents on revenue. kraft foods also reporting the top line has been soft since the split yoch from mondalese, rise in commodity costs, including three key ingredients here, cheese. kraft is all about cheese, meat and grains. analysts are expecting a gains of 80 cents, and get out the popcorn once again.
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amc is looking for a gain of 29 cents on revenue of 737 million. we're going to end on whole foods the company has lost about 30%, making it the second worst performer in the s&p 500. it recently lowered the outlook for a third straight time. investors want to know whether it can deliver on the expectations of 39 cents gain on revenue of 3.39 billion. you've got to wonder, scott, is the organic thing a little ho-hum? are people just not willing to pay up for that? >> we know, bertha, one investor who has a lot riding on tonight's numbers. that's mike murphy. he owns the stock in his playbook, and personally in his portfolio, mike is on the phone now. feeling good or a little uneasy? >> it's been a real uncomfortable ride, but today's move has given me reason for some optimism. really, when they speak tonight,
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scott, my main concern is that they do not disappoint again. remember, last quarter down 20%. i think the street just said they didn't believe what management was telling them. so five dr they disappointed and we know that organic eating is not a fad, and the growth story is still impact. so as long as they get through this rough patch, i want to hear the key, no -- how much stock did management go in and buy? if that's a big number, i think you're set up for a big rally. >> we'll talk to you on the other side. coming up, how can a pair of
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well, we see beats on wall street all the time, but today's worst trade may take the cake. in vegas at the world series of poker, two players, the odds of a split pot are 96%. both players go all in, knowing each of them have virtually the same hand, but on the final card, the dealer turns over a heart, which is enough to complete a flush for crazy cats and to knock conner drinen and his million $buy-in out of the tournament. some are calling it the toughest beat in the history of the tournament. wow. guys, you play poker? >> i do, but not like that. those guys are on a different level.
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steve? >> i'm going with tbf and american airlines, too. >> rf micro again. >> akami, i bought it today. >> i ball some calls. have a great rest of the day. ty, take it away. power starts now. >> thank you very much. the numbers tell the story. day of data. adp says 218,000 private sector jobs were added in the past month, second quarter gdp coming in at a big number, 4%, economists predicted 3%. i'm tyler math i sen. sue, welcome back. she's at the nyse. you might november have to the -- work. dow jones industrial average now on the minus side by 48 points,


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